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Ashby’s Plastribution forms new relationship with RBS to fund further growth

Ashby de la Zouch based Plastribution, the UK's leading distributor of polymers and plastics raw materials, has turned to RBS to support the company's business growth story. This new funding support comes at a time when the firm has unveiled a new brand positioning as it looks to exploit its business momentum to the full.

Plastribution, which supplies a mainly UK customer base but sources materials from a global supply chain, has reported double-digit per annum revenue growth over the past two years - up from £41m in 2009 to £62m in 2011.

The company has successfully leveraged its market leading position, strong business contacts, supply chain logistics expertise and comprehensive industry knowledge to expand at a time of wider economic uncertainty. Plastribution has continued to recruit new staff and has created two apprenticeships this year alone as it invests in vocational education to support its future plans.

Plastribution has also invested heavily in research and development so it remains at the forefront of innovation in the market. In September the company further strengthened its portfolio of sustainable materials with the addition of a new and unique bacteria/enzyme-based biodegradation technology. The result of seven years of extensive research, the Enzymoplast technology promotes the conversion of polyethylene quickly and safely into carbon dioxide, biomass and water.

The decision to move the company's financial relationship to RBS is due in part to the bank's international capabilities and reach. The Ashby de la Zouch based firm is increasingly dealing with international stakeholders and was seeking a financial services provider with international strength and depth, particularly with regards to foreign currency and payment processes. 

Mike Boswell, managing director, Plastribution, said: "To continue our growth we need the right financial platform to trade from. Markets have worked for us and despite the recession, demand for our expertise and product range has driven our recent substantial revenue growth. But we are not resting on our laurels. We believe there are further growth opportunities in both the UK and international markets. Our investment in research and development continues to reap rewards. It is important to be at the forefront of market innovation as this provides first mover benefits, but it also requires large investment, so we need finance partners who understand what we are seeking to achieve and are willing to back our strategy."

Philip Grimshaw, director, business origination, corporate and institutional banking at RBS, added: "By involving our specialist product partners in trade and foreign exchange we have been able to structure our support to meet Plastribution's needs, enhancing their customer service and reducing administration. Our role is to work with them and provide flexible finance to support their business aspirations in both the medium and long term."

 

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Article published by Midlands Business News on 21 November, 2011

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